IRS goes on to say that many of the refunds are owed to individuals who did not have enough income to require them to file a return but they had taxes withheld from wages or paid in estimated payments. They need to file a return to receive their refund. If no return is filed, the money goes to the federal government. There is NO penalty for filing a late return when there is a refund due.

A word of caution, though. The refund may be held if returns are not filed for 2010 or 2011, or if there are offsets for items such as child support or student loans.